STATESVILLE, N.C., Dec. 6, 2016 /PRNewswire/ -- Kewaunee Scientific
Corporation (Nasdaq: KEQU) today reported results for its second
quarter of fiscal 2017, ended October 31,
2016.
Net earnings for the quarter increased 114% to $1,486,000,
or $0.54 per diluted share, as
compared to net earnings of $695,000,
or $0.26 per diluted share, in the
second quarter last year.
Sales for the quarter were $36,329,000, a 17.1% increase from sales of
$31,037,000 in the prior year.
Domestic sales for the quarter were $28,211,000, up 7.4% from sales of $26,279,000 in the second quarter of last year.
International sales for the quarter were $8,118,000, up 70.6% from sales of $4,758,000 in the second quarter last year.
The growth in Domestic sales was a result of continued strength
of incoming orders across our distribution channels as the
marketplace for laboratory furniture and scientific equipment in
the United States continued to
improve. International sales were strong as we finished
deliveries on multi-year laboratory projects in India and Kuwait.
The Company also announced during the quarter that it was
awarded a second large multi-year laboratory project for
Kuwait University Sabah Al-Salem
University City at the College of Science, valued at $18.5M.
The Company's order backlog was $101.1
million at October 31, 2016,
as compared to $92.4 million at
October 31, 2015, and $86.2 million at July
31, 2016. This level of order backlog is a new record
for Kewaunee.
The Company's balance sheet and financial condition remain
strong. Unrestricted cash on hand was $7.6
million at the end of the quarter, as compared to
$3.3 million at the end of the second
quarter last year. Working capital was $31.4
million, as compared to $29.0
million at the end of the second quarter last year.
Short-term debt and interest rate swaps were $6.7 million at the end of the quarter, as
compared to $5.5 million at the end
of the second quarter last year, and total bank borrowings and
interest rate swaps were $10.3
million, as compared to $9.5
million at the end of the second quarter last year.
"I am very happy with our results this quarter as we continue to
compete for and win significant orders globally, demonstrating the
strength and market leadership of Kewaunee," said David M. Rausch, Kewaunee's President and Chief
Executive Officer. "I am extremely pleased that Kewaunee has
been awarded a second large order in Kuwait on which we will begin design and
engineering during the second half of the current fiscal year,
followed promptly by the production phase of the project.
"Looking forward, our third quarter is always our most
challenging due to the holidays as well as customers managing their
year-end inventory; however, I am optimistic that the
results for the current fiscal year will be strong as we
continue to see new opportunities worldwide."
About Kewaunee Scientific
Founded in 1906, Kewaunee
Scientific Corporation is a recognized global leader in the design,
manufacture, and installation of laboratory, healthcare, and
technical furniture products. Products include steel, wood, and
laminate casework, fume hoods, adaptable modular systems, moveable
workstations, stand-alone benches, biological safety cabinets, and
epoxy resin worksurfaces and sinks.
The Company's corporate headquarters is located in Statesville, North Carolina. Direct sales
offices are located in the United
States, India, Singapore, and China. Three manufacturing facilities are
located in Statesville serving the
domestic and international markets, and one manufacturing facility
is located in Bangalore, India
serving the local and Asian markets. The Company's China headquarters, sales office, and assembly
operation are located in Suzhou Industrial Park, China. Kewaunee Scientific's website is
located at http://www.kewaunee.com.
This press release contains statements that the Company
believes to be "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact included in
this press release, including statements regarding the Company's
future financial condition, results of operations, business
operations and business prospects, are forward-looking statements.
Words such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "predict," "believe" and similar words,
expressions and variations of these words and expressions are
intended to identify forward-looking statements. All
forward-looking statements are subject to important factors, risks,
uncertainties and assumptions, including industry and economic
conditions that could cause actual results to differ materially
from those described in the forward-looking statements. Additional
information concerning these factors is contained in the Company's
filings with the Securities and Exchange Commission. These
forward-looking statements speak only as of the date of this
document. The Company assumes no obligation, and expressly
disclaims any obligation, to update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contact:
|
Thomas D. Hull
III
|
|
(704)
871-3290
|
Kewaunee
Scientific Corporation
|
Consolidated
Statements of Operations (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
October
31,
|
|
October
31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net sales
|
|
|
$
36,329
|
|
$
31,037
|
|
$
73,608
|
|
$
62,126
|
Cost of products
sold
|
|
29,225
|
|
25,505
|
|
59,365
|
|
50,751
|
Gross
profit
|
|
|
7,104
|
|
5,532
|
|
14,243
|
|
11,375
|
Operating
expenses
|
|
4,816
|
|
4,403
|
|
9,894
|
|
8,722
|
Operating
earnings
|
|
2,288
|
|
1,129
|
|
4,349
|
|
2,653
|
Other
income
|
|
119
|
|
85
|
|
238
|
|
187
|
Interest
expense
|
|
(78)
|
|
(61)
|
|
(158)
|
|
(153)
|
Earnings before
income taxes
|
|
2,329
|
|
1,153
|
|
4,429
|
|
2,687
|
Income tax
expense
|
|
792
|
|
446
|
|
1,562
|
|
1,017
|
Net
earnings
|
|
|
1,537
|
|
707
|
|
2,867
|
|
1,670
|
Less: net earnings
attributable to
|
|
|
|
|
|
|
|
|
the noncontrolling interest
|
|
51
|
|
12
|
|
81
|
|
35
|
Net earnings
attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation
|
|
$
1,486
|
|
$
695
|
|
$
2,786
|
|
$
1,635
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
|
Basic
|
|
|
$
0.55
|
|
$
0.26
|
|
$
1.03
|
|
$
0.62
|
Diluted
|
|
|
$
0.54
|
|
$
0.26
|
|
$
1.02
|
|
$
0.61
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
|
|
|
|
shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,706
|
|
2,671
|
|
2,699
|
|
2,650
|
Diluted
|
|
|
2,729
|
|
2,690
|
|
2,718
|
|
2,674
|
Kewaunee
Scientific Corporation
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
April 30,
|
|
|
|
|
|
2016
|
|
2016
|
Assets
|
|
|
|
|
(Unaudited)
|
|
|
Cash and cash
equivalents
|
|
|
|
$
7,579
|
|
$
5,222
|
Restricted
Cash
|
|
|
|
1,649
|
|
1,567
|
Receivables, less
allowances
|
|
|
|
29,040
|
|
27,835
|
Inventories
|
|
|
|
|
16,789
|
|
15,626
|
Prepaid expenses and
other current assets
|
|
|
|
1,023
|
|
707
|
Total Current Assets
|
|
|
|
56,080
|
|
50,957
|
Net property, plant
and equipment
|
|
|
|
14,579
|
|
14,118
|
Other
assets
|
|
|
|
|
6,895
|
|
7,330
|
Total
Assets
|
|
|
|
|
$
77,554
|
|
$
72,405
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Short-term borrowings
and interest rate swaps
|
|
|
$
6,722
|
|
$
3,818
|
Current portion of
long-term debt
|
|
|
|
421
|
|
421
|
Accounts
payable
|
|
|
|
10,821
|
|
11,722
|
Other current
liabilities
|
|
|
|
6,676
|
|
4,989
|
Total Current Liabilities
|
|
|
|
24,640
|
|
20,950
|
Other non-current
liabilities
|
|
|
|
12,165
|
|
12,903
|
Total Liabilities
|
|
|
|
36,805
|
|
33,853
|
Noncontrolling
interest
|
|
|
|
390
|
|
310
|
Kewaunee Scientific
Corporation equity
|
|
|
|
40,359
|
|
38,242
|
Total Equity
|
|
|
|
40,749
|
|
38,552
|
Total Liabilities and
Equity
|
|
|
|
$
77,554
|
|
$
72,405
|
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SOURCE Kewaunee Scientific Corporation